What are a Chocolate Fish Coffee franchisee's obligations upon termination or non-renewal of the franchise agreement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, Item 17 details the franchisee's obligations upon termination or non-renewal. These obligations include several key actions that a franchisee must undertake to properly conclude their business operations under the Chocolate Fish Coffee brand.
Specifically, the franchisee is required to pay all outstanding amounts owed to Chocolate Fish Coffee. They must also return the operations manual and any other proprietary items belonging to the franchisor. Additionally, the franchisee is responsible for notifying and transferring services from phone, internet, and other service providers.
Upon termination or non-renewal, the franchisee must cease doing business as a Chocolate Fish Coffee establishment and remove all branding and identification associated with the franchise. Finally, Chocolate Fish Coffee retains the option to purchase the franchisee's business, which the franchisee must consider. These stipulations ensure an orderly separation and protect Chocolate Fish Coffee's brand and proprietary information.